10-QPeriod: Q3 FY2022

INTUIT INC. Quarterly Report for Q3 Ended Apr 30, 2022

Filed May 24, 2022For Securities:INTU

Summary

Intuit Inc. reported strong financial performance for the third quarter and the first nine months of fiscal year 2022, demonstrating significant revenue and net income growth year-over-year. This growth was driven by robust performance across its key segments, particularly Small Business & Self-Employed (boosted by the Mailchimp acquisition) and Consumer (benefiting from a shift in tax filing deadlines and higher-priced offerings). The company also saw substantial contributions from Credit Karma, despite some margin pressure in the current quarter. Investments in strategic priorities, including an AI-driven platform and connecting customers with experts, are underpinning Intuit's growth strategy. While the company faced a significant one-time charge related to a settlement with state attorneys general, its underlying operational performance remains strong, reflecting continued execution on its business objectives. The company's financial position remains solid, with ample cash reserves to support ongoing operations and strategic initiatives.

Financial Highlights

52 data points
Beta

Revenue

$5.63B

Net Income

$1.79B

31.9% Net Margin

EPS (Diluted)

$6.28

Total Assets

$28.51B

Cash & Equivalents

$3.53B

Free Cash Flow

$3.26B

Financial Statements
Beta
Revenue$5.63B
R&D Expenses$600.00M
Operating Expenses$3.24B
Operating Income$2.40B
Interest Expense$21.00M
Net Income$1.79B
EPS (Basic)$6.35
EPS (Diluted)$6.28
Shares Outstanding (Basic)282.00M
Shares Outstanding (Diluted)286.00M

Key Highlights

  • 1Total net revenue increased by 35% to $5.63 billion for Q3 FY2022 and by 46% to $10.31 billion for the first nine months of FY2022, compared to the prior year periods.
  • 2Net income grew by 23% to $1.79 billion for Q3 FY2022 and by 26% to $2.12 billion for the first nine months of FY2022.
  • 3Diluted net income per share rose by 18% to $6.28 for Q3 FY2022 and by 21% to $7.48 for the first nine months of FY2022.
  • 4The Small Business & Self-Employed segment saw revenue increase by 42% in Q3 FY2022 and 37% year-to-date, significantly bolstered by the inclusion of Mailchimp's revenue.
  • 5The Consumer segment revenue increased by 32% in Q3 FY2022 and 39% year-to-date, benefiting from the shift in tax filing deadlines and a favorable product mix.
  • 6Operating expenses increased by 45% in Q3 FY2022, partly due to a $141 million one-time charge related to a settlement with state attorneys general, alongside increased investments in marketing, staffing, and amortization.
  • 7Intuit continued to repurchase shares, with $1.35 billion spent on repurchases during the first nine months of FY2022, and maintained its dividend payments.

Frequently Asked Questions

The substantial revenue growth in Q3 FY2022 was driven by strong performance across all segments. The Small Business & Self-Employed segment benefited significantly from the inclusion of Mailchimp's revenue following its acquisition. The Consumer segment saw growth due to a favorable shift in tax filing deadlines compared to the prior year and a move towards higher-priced TurboTax offerings. Credit Karma also contributed positively, particularly in its personal loan and credit card verticals.

The acquisition of Mailchimp, completed in November 2021, significantly contributed to Intuit's Small Business & Self-Employed segment revenue. For the third quarter of fiscal 2022, Mailchimp contributed $257 million in revenue, and for the first nine months, it contributed $497 million. This acquisition is a key driver of the segment's robust growth and aligns with Intuit's strategy to be the center of small business growth.

Intuit recorded a $141 million one-time charge in the third quarter of fiscal 2022 related to a settlement agreement with the attorneys general of 50 states and the District of Columbia, along with other related inquiries. This charge impacted operating income and net income for the quarter, but the underlying operational performance of the business remained strong.

Intuit maintains a strong liquidity position with $3.9 billion in cash, cash equivalents, and investments as of April 30, 2022. The company expects to continue generating significant cash from operations, which, combined with existing reserves, is anticipated to be sufficient to meet its liquidity needs for at least the next 12 months. Intuit plans to return excess cash to stockholders through share repurchases and dividends.